It’s official: NC public school athletes can monetize NIL rights after judge signs motion

Beginning immediately, North Carolina’s public school athletes can monetize their NIL rights.

Earlier this month, Wake County Superior Court Judge Graham Shirley ruled in favor of a motion submitted by a family suing the state for NIL rights, granting a preliminary injunction to allow public school athletes the ability to earn money off their name, image and likeness. He signed that motion Monday afternoon.

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The family of Greensboro Grimsley quarterback Faizon Brandon, the No. 1 football recruit in the nation, previously sued the state and its Board of Education, claiming Brandon had lost out on substantial NIL money due to the current rules, which did not allow public school NIL deals.

The State Board then voted at its fall meeting to give preliminary NIL approval that could, if passed next year, allow athletes to benefit beginning in July, 2025.

Mike Ingersoll, a Charlotte-based attorney representing the Brandons, told The Observer that they asked the judge for an order finding the N.C. General Assembly intended that public school athletes would get access to NIL, and that the State Board would create rules permitting its use.

Ingersoll said the judge then wiped away a temporary rule prohibiting NIL access and ordered that the State Board’s proposed permanent rule, that could’ve gone in place next year, be put into effect now, until the lawsuit ends.

Shirley’s action Monday grants that immediate approval.

Do’s and don’ts of NIL

Despite the immediate ability for players to profit from NIL, the rules and regulations surrounding that access are not clear, as the State Board of Education has not yet set guidelines. During the State Board of Education’s public meeting in September, under the proposed new rule that was to take effect in 2025, athletes could be paid for:

▪ Public appearances or commercials.

▪ Autograph signings.

▪ Athletic camps and clinics.

▪ Sale of non-fungible tokens (“NFTs”).

▪ Product or service endorsements.

▪ Promotional activities, including in-person events and social media advertisements.

There would be a list of things athletes couldn’t promote, including adult establishments, alcoholic products, tobacco products, cannabis, sports gambling and weapons.

Athletes would also be prohibited from doing things such as wearing their team uniform during their NIL activities or promoting goods during athletic competitions or school activities.

Schools would be prohibited from using NIL deals as a recruiting tool.

Athletes would need the deal to be approved by their parent or legal guardian if they’re under the age of 18.

NC private schools had a head start

The state’s private schools got NIL access earlier this year, along with a set of rules surrounding it. Those include:

▪ Student-athletes must keep their NIL activities and participation in interscholastic athletics separate.

▪ No collectives.

▪ Member schools cannot offer, secure or participate in NIL deals.

▪ Limited permissible activities.

▪ All NIL deals must be reported to and approved by the NCISAA State Office.

Genesis of the Brandon lawsuit

Brandon’s lawsuit, filed Aug. 23 in Wake County Superior Court, names the state Board of Education and Department of Public Instruction as defendants. It targets North Carolina’s uneven handling of NIL rights in high school athletics — that athletes at private schools are allowed to engage in NIL opportunities, while those enrolled in public schools cannot.

There are separate rules because there are separate organizations that govern North Carolina high school sports. The North Carolina Independent Schools Athletic Association, which oversees most private schools, allows NIL deals. The North Carolina High School Athletic Association, a state-run entity in charge of public high school athletics, has not.

During the state Board of Education’s monthly meeting on Sept 5, members heard a proposed rule change that would allow public high school athletes to enter into NIL deals, provided they don’t violate certain restrictions. Among those restrictions:

▪ That financial compensation isn’t based on athletic performance.

▪ That any NIL activity does not reference a school or conference.

▪ That athletes don’t appear in uniform or apparel of their school during any NIL activity.

The proposal passed, with a timeline projecting its implementation for the 2025-26 school year. The state board said afterward that it would take public comments from Oct. 1 to Dec. 6. A virtual public hearing is still scheduled for 10 a.m. on Nov. 8.

At the meeting, state board assistant general counsel Ryan Collins reminded the board that they could revise the rule or not approve it when it comes back for the January vote.

But by then, Brandon’s opportunity would have already come and gone.

Andrew Carter and T. Keung Hui of the News & Observer contributed to this story.